gb519 week 3 assignment

9-33 CVP AnalysisLawn Master company, a manufacturer of riding lawn mowers, has a projected income for 2013 as follows:Sales      46,000,000Operating expenses:     Variable expenses $32,200,000Fixed expenses $7,500,000Total expenses      39,700,000 Operating profit $6,300,0009-33 questions:1. Determine the breakeven point in sales dollars.2. Determine the required sales in dollars to earn a before tax profit of $8,000,000.3. What is the breakeven point in sales dollars if the variable cost increases by 12%?

 

10-55

Kelly Company is a retail sporting goods store. Facts regarding Kelly’s operations are as follows:

– Sales, all on account, are budgeted at $220,000 for December and $200,000 for January.

– Collections are expected to be 60% in the month of sale an= d 38% in the month following the sale.

-Gross margin is 25% of sales.

– A total of 80% of the merchandise sold in a month is purchased in the month prior to the month of sale and 20% is purchased in the mo= nth of sale. Payment for purchased merchandise is made in the month following the purchase.

– Other expenses [selling and administrative] to be paid in = cash each month are $22,600.

– Annual depreciation is $216,000, one-twelfth of which= is reflected as part of monthly operating expenses.
Kelly Company’s statement of financial position at the close of business on November 30 as follows: Kelly Company Statement of Financial Position November 30, 2013 Assests Cash = $22,000 Accounts receivable(net of $4,000 = 76,000 Allowance for doubtful accounts) Inventory =    132,000 Property, plant, and equipment(net of $680,000 accumulated depreciation)  870,000= Total Assets    $1,100,= 000 Liabilities and Stockholders Equity  Accounts payable $162,000 Common stock =     800,000 Retaining earnings = 138,000 Total liabilities and equity = $1,100,000